The payment structure consists of $10 million in newly issued shares upfront, supplemented by two $15 million contingent payments payable in cash or equity. An additional $20 million is tied to specific future production milestones. Luca Mining retains the right to repurchase half of the 2% net smelter return interest for $12.5 million.
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Luca Mining Expands in Mexico with $60 Million Agnico Eagle Deal
Luca Mining has secured a deal to acquire the El Barqueno gold-silver-copper project in Jalisco, Mexico, from industry heavyweight Agnico Eagle Mines. The transaction, valued at up to $60 million, grants the buyer a sprawling 32,000-hectare site while adding a 2% net smelter return interest to Agnico Eagle’s portfolio.
El Barqueno currently holds historical mineral resource estimates of 399,265 gold equivalent ounces, with a further 650,046 inferred ounces. Despite the scale of the deposit, the site is presently locked in regional legal proceedings regarding environmental land-use zoning, which prevents active exploration drilling. CEO Dan Barnholden described the purchase as a strategic move to leverage the company’s local experience to de-risk the project. Both firms are working through the Mexican legal system to resolve the permitting impasse and unlock the property’s development potential.
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